Hebbar focus on stringent asset quality control
With the business environment gradually returning to normalcy after Covid 2.0, CreditAccess Grameen Ltd continued to maintain its focus on stringent asset quality control, the Bengaluru-headquartered non-banking finance company and micro finance institution (NBFC-MFI) MD and CEO Udaya Kumar Hebbar said on 5 Sept 2021.
“On the back of improved collections trend, we gradually increased our monthly disbursements, not only serving our existing customers, but also adding new customers across our end markets,” he said.
“We are working towards further increasing the monthly collection efficiency which will help us to reduce the overdue portfolio over coming months. We draw comfort from steady increase in the vaccinations across the country, relaxation in Covid-led restrictions, continued regulatory support and rising pent up demand in the economic activity, providing positive growth outlook for FY22.”
CA Grameen has reported robust growth in gross loan portfolio (GLP), monthly disbursement run-rate back at pre-covid levels, strong collections trend, and maintaining strong asset quality control.
CA Grameen’s standalone collection efficiency excluding arrears improved to 92.5% in August 2021 from 91% in July 2021 and 81% in June 2021. Similarly, standalone collection efficiency including arrears improved to 99 per cent in August 2021 from 97 per cent in July 2021 and 84 per cent in June 2021, indicating consistent improvement in overdue collections.
CA Grameen’s standalone GLP as on 31 August 2021, grew 18.8% YoY and 5% compared to June 2021 to Rs.11,155 crores. Standalone disbursement during August 2021, jumped 200% YoY and 7.3% compared to July 2021 to Rs.1,188 crores, reverting to pre-Covid levels. Standalone Portfolio at Risk gradually reduced in August 2021 with PAR 30 at 11%, PAR 60 at 8.3% and PAR 90 at 6.3%. On the back of healthy business performance, 103 new branches were opened during July 2021 and August 2021, primarily across newer geographies.
Madura Microfinance Limited (MMFL), subsidiary of CA Grameen, also witnessed the collection efficiency excluding arrears increasing to 86% in August 2021 compared to 83% in July 2021 and 66% in June 2021. MMFL’s GLP grew 6.9% YoY and 3.2% compared to June 2021 to Rs.2,104 crores. Disbursement during August 2021, increased 63% YoY to Rs.145 crores. Portfolio at Risk moderately increased in August 2021 with PAR 30 at 13.1%, PAR 60 at 9.5% and PAR 90 at 7.3%, however, it is expected to gradually decrease going forward with improving collections trend.
Overall, on a consolidated basis, CA Grameen reported 16.7% YoY growth in gross loan portfolio to Rs.13,259 crores. Consolidated branch network increased to 1,527 in August 2021 compared to 1,424 in March 2021. #banking #finance #loans #investment #economy /fiinews.com
